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Eighteen (18) Creditors sued In re CM Vaughan LLC.

Neil C. Gordon, the Chapter 7 Trustee for CM Vaughn, LLC, recently filed a complaint against Jessica Goodstein Taylor in the first week of March to set aside the transfer of an amount of $ 81,300.00 as preference under Chapter 11 Section 547 of the Bankruptcy Code. The Trustee has filed over 18 complaints so far, instituting preference actions against different vendors and other parties-in-interest in the bankruptcy cases of CM Vaughn, LLC.

On March 3, 2008, Charles Michael Vaughn and CM Vaughn LLC filed for bankruptcy in the Northern District of Georgia. On April 22, 2008, these cases were converted to Chapter 7 of the Bankruptcy Code and on April 25, 2008, Neil C. Gordon was appointed the Chapter 7 Trustee. Hays Financial Consulting, LLC was engaged as Accountants and Financial Advisors to the Trustee of the bankruptcy estate of CM Vaughan, LLC. The Debtor filed for bankruptcy as investors were seeking to withdraw their funds. Hays recovered and liquidated assets and prepared a funds tracing database.

The U.S. case is In re CM Vaughan LLC, 08-64060-mgd; Bankruptcy Judge Mary Grace Diehl is presiding over this case. The plaintiff has retained Arnall, Golden, Gregory LLP as their attorneys.